Technological advancements have and will continue to change the business world in many aspects. It has changed whole industries, making some obsolete and some more efficient and relevant. With the trajectory of the current state of technology, it’s expected that in the future, technology has the potential to drive global industry significantly.
Here are the two main technological implementations that will shape the future of trade.
You may have heard of blockchain being described as a ‘digital ledger’, which in other words, is essentially a digital record of transactions. Blockchains are used to document digital transactions made with cryptocurrencies and are used to store and communicate information in a public database securely.
While blockchain is most known for its role in facilitating the rise of cryptocurrency such as Bitcoin, the use of blockchain goes well beyond this. Within the context of trade, blockchain technology has the potential to improve the efficiency in the industry by cutting costs through the digitisation of documents. To put this into context, paperwork is responsible for 20% of the cost of doing global trade.
With the heavy involvement of third parties within the industry, implementation of blockchain can help cut the middleman and drive down costs for all parties involved. With the advancements and creation of smart contracts with blockchain, it is possible to eliminate the process of issuing a physical bill of lading. Since blockchain is decentralised and public, the information is secure and fraud-free whilst also cutting down cost by 90%. This once essential aspect of trade can now take place on a digital platform and thus bring in greater efficiency and mean a significant drop in costs for all parties.
2. Artificial intelligence
Artificial intelligence (AI) is primed to make the biggest difference in trade going forward. With the growing investment in artificial intelligence, the versatility of this technology can help with efficiency in many different stages of trade.
It’s projected that by 2021, half of all manufacturing supply chains will have invested in some kind of AI to support the supply chain. This could be through AI that utilises big data for supply management, AI-controlled robotics in warehouses and ports, and autonomous vehicles.
The use of AI on the transportation and logistics industry is predicted to result in an increase in annual revenue by half a billion dollars due to its increase in efficiency and reduction in costs. Seeing that many companies are focusing on the development of autonomous vehicles, the reality of self-driving vehicles are not far within reach. With the continuous advancements in autonomous vehicles, it implicates a major drive down in costs along the logistic chain within transportation.
Further implementations of AI also allows autonomous storage with the development of autonomous ports and warehouses. Using AI to simplify data analytics solves the most complicated part of trade, supply chain management. Not only will AI data analytics speed up logistics, but it will also utilise the most efficient paths for operations which has the potential to drop costs by 40%.
There are a myriad of ways that AI impacts trade and statistics to back it up as well, if you are interested in more information, read the report.
Learn More on How Technology Will Shape the Future of Trade
Technology has a tremendous impact on trade going forward. To learn more about how trade is impacted by technology and more in-depth information regarding the state of the industry in relation to technology, read our comprehensive report.